Budget Lines The Following Questions Refer to the Following Diagram, Which Shows

question 36

Multiple Choice

Budget Lines

The following questions refer to the following diagram, which shows the budget lines faced by a consumer last year and this year.

-Refer to Budget Lines.If the consumer purchased basket B last year and purchases basket C this year,we can conclude that

• A) the consumer is not behaving optimally.
• B) the consumer's tastes changed between this year and last year.
• C) the consumer's indifference curves cannot be convex.
• D) the law of demand does not hold for this consumer.

---

Definitions:

Activating Group

A substituent attached to a benzene ring that increases its reactivity by stabilizing the intermediate cation through resonance or electron-donating effects.

Benzene

A cyclic hydrocarbon with the formula C6H6, characterized by its aromaticity, consisting of a ring of six carbon atoms with alternating double and single bonds.

Mononitration

The chemical process of introducing one nitro group (-NO2) to an organic molecule, commonly employed in the synthesis of nitro compounds.

Bromination

A chemical reaction involving the addition of bromine to another substance, often used to test for alkenes or alkanes.